News flash! Parliament introduces legislation on restricting GST refunds – Division 142 to replace S 105-65

Today the Tax Laws Amendment (2013 Measures No.4) Bill 2013 was introduced into the House of Representatives. The legislation proposes the introduction of Division 142 into the GST Act. The Division will replace s 105-65 of Schedule 1 to the Taxation Administration Act. The legislation is to take effect for tax periods starting on or after 17 August 2012.

The proposed legislation significantly changes the landscape for GST refunds. As noted at 3.1 of the Explanatory Memorandum, the amendments are intended to:

ensure that excess goods and services tax (GST) is only refundable in certain circumstances. The amendments apply to overpayments of GST as a result of a mischaracterisation of a supply or arrangement or miscalculation of the GST payable, or for any other reason, if the overpaid GST has been passed on.

The documents can be accessed below:

The legislation was issued as an exposure draft earlier this year. My post discussing the exposure draft can be accessed here. My analysis of the exposure draft can be accessed here.

9 Submissions were received in response to the exposure draft and they can be accessed here. It appears that some of these submissions had an effect as there were a number of changes made to the exposure draft.

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